Crypto Sanctions Push Illicit Blockchain Activity to $154B

Illicit crypto flows surged by 162% to $154 billion in 2025 as sanctioned countries used blockchain networks to bypass global financial restrictions.

By 2025, at least 154 billion illicit cryptocurrency addresses had been received, 162 percent higher than in 2024, which was 59 billion. Chainalysis published the results on Thursday.  

Blockchain networks became increasingly used by sanctioned nation-states and organizations that avoid financial limitations at unprecedented rates. These entities transfers of funds on-chain helped catalyze the surge to a great extent.  

Nation-States Turn Blockchain Into Financial Battleground

Chainalysis described 2025 as a turning point, referring to record volumes associated with the on-chain activity of nation-states. It is the most recent stage of the development of the illegal crypto ecosystem.  

Russia contributed significantly to the growth. After facing widespread international sanctions following its invasion of Ukraine, Russia introduced a ruble-backed token currency called A7A5 in February 2025.

The token executed over $93.3 billion transactions within 12 months, which is scale and coordination that the prior years had not experienced.  

In May, the Global Sanctions Inflation Index announced a record high. Authorities worldwide sanctioned approximately 80,000 individuals and organizations.

In 2024, the United States added a record 3,135 entities to its Specially Designated Nationals List.

Studies conducted by the Center for a New American Security revealed that the increase in sanctions across the globe increased pressure on sanctioned entities.  

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Stablecoins Dominate Criminal Transaction Landscape

In 2025, stablecoins represented 84 percent of the total volume of illicit transactions. Chainalysis attributed their commonality to stable prices, cross-border transfer, and poor liquidity density. The very characteristics of legitimate use that were attractive to legitimate users were also appealing to sanctioned users.  

Crimes on the crypto economy are a negligible part of a bigger picture; illegal transactions continue to constitute under 1 % of all on-chain transactions.  

In December, blockchain security company PeckShield reported 26 big exploits. Address-poisoning scams and private-key leaks caused major losses, including a $50 million loss after a victim copied a counterfeit address that closely resembled the intended destination.

Another attack involved a leaked private key linked to a multisignature wallet, resulting in an estimated loss of $27.3 million.

Ronald Spektor, a Brooklyn resident, is charged with stealing 16 million. He is alleged to have impersonated company employees to attack about 100 Coinbase users. The allegations are outlined in legal filings.

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